Road Infrastructure Financing Models

• Main Authors: Rajko Horvat, Joso Vurdelja, Marko Amidžić
• Format: Article
• Language: English
• Published: University of Zagreb, Faculty of Transport and Traffic Sciences 2007-11-01
• Series: Promet (Zagreb)
• Subjects: traffic planning; road financing models; financial investment projections; state budget; concessions
• Online Access: http://www.fpz.unizg.hr/traffic/index.php/PROMTT/article/view/976

Already in its early phase, starting with initial general needsof people to survive and find food, traffic and traffic se1viceturned into a modern system which increased the complexityand interdependence within the traffic system, and then withthe environment as well. The financing problem is especially expressedduring the creation of new roads and road networksand achieving of better transport service. High investmentmeans required for the road construction require also systemicforecasting of financial sources. Financing of road infrastructureconstruction opens up the basic dilemma: whether totransfer the costs directly to the state budget and the cun·entgeneration or to transfer this burden to the future generations.These considerations require also a certain organizational approach.High investments in road infrastructure require a rationalselection before the decision itself on the selection of thetraffic system. Such selection has to be done based on adequatetraffic plans, which assumes classification of all the needs regardingtheir level so that every investment would be rationallyallocated.